Learn a simple forex strategy to accurately buy dips in up trends and sell rallies in down trends. This technique can be employed on any currency pair and timeframe starting from 1 hour and above.
Used Forex Indicators: MACD (12,26,2), Stoch (5,3,3)
Timeframe's: 1 Hour and above
Currency Pairs: Any
Strategy Entry Rule
BUY Rule: Buy if MACD > 0 and Stochastic turns back above 20 from below.
SELL Rule: Sell if MACD < 0 and Stochastic turns back below 80 from above.
The picture above shows 3 profitable trades and 1 losing trade on the AUD/USD 1 hour chart. Buy dips in up trends and sell rallies in down trends.
Strategy Stop Loss Rule
BUY: Stop Loss Rule: Place stop loss 3 pips below the most recent support area.
SELL: Stop Loss Rule: Place stop loss 3 pips above the most recent resistance area.
